Making flexibility assets bankable
Batteries, demand response and smart grids are not yet bankable enough to attract private capital. This line develops the tools that allow banks to assess and finance them.
Objective
PurposeFlexibility assets earn revenues from several markets at once under rules that are still changing, and Chilean banks lack the tools to assess them with the criteria they apply to any other infrastructure asset. Together with the Ministry of Energy, the Ministry of Economy and the financial sector, this line co-develops a bankability framework for Chile, with at least three standardised financial models for banks (stand-alone storage, storage with solar PV and flexible industrial demand) and contractual and regulatory instruments adapted to the Chilean market.
Questions it addresses
Research- What keeps banks from financing technically viable flexibility projects today?
- How should an asset be assessed when its revenues depend on several markets and evolving rules?
- Which contractual and regulatory instruments, such as leasing, would make flexibility investable?
Team
Leads
Counterparts
Who it works withPublic deliverables
At the end of the programme- Bankability framework with three standardised financial models for banks
- Capacity-building workshop with the financial sector
- Closing and dissemination seminar with the Ministry of Energy or the CNE
Other lines of the programme
Decarbonisation ProgrammeDiscover the full programme
Five lines of work to unlock the decarbonisation of the Chilean power sector.